Pre Open US - US Oil 8 Aug 2023

Oil prices dropped over 2.7% as new data revealed China's July imports and exports fell significantly more than anticipated. This adds to concerns about the sluggish post-COVID recovery for the world's top oil importer. China's July oil imports plummeted by 18.8% from the previous month, hitting the lowest daily rate since January. Imports overall shrank by 12.4%, and exports declined by 14.5%. Despite this, some analysts expect China's fuel demand to improve from August to early October due to increased construction and manufacturing activities. Saudi Arabia and Russia's oil output cuts are also influencing the market.

From a technical perspective, WTI is undergoing corrections and has reached the resistance level within the 83 territory. Following its dip to the 80-support level, the subsequent target lies at 79, succeeded by 77.